Loan Eligibility Calculator India (2026)

Find out how much home or personal loan you qualify for based on your net income and existing EMIs. Built using standard Indian banking FOIR guidelines.

Financial Profile

Eligible Loan Amount

₹0

Max EMI Allowed

₹0

Total Interest

₹0

Principal Interest
Principal: ₹0
Interest: ₹0

Disclaimer: This is an estimate based on FOIR norms. Actual bank eligibility depends on your credit score and stability.

What is Loan Eligibility?

Loan Eligibility is the maximum amount of money a bank or financial institution is willing to lend you. It is determined by your repayment capacity, primarily based on your income, age, existing debts, and credit history. Understanding your eligibility helps you apply for the right loan amount and improves the chances of approval.

FOIR: How Banks Calculate Eligibility

Banks in India use a metric called FOIR (Fixed Obligation to Income Ratio) to determine your capacity to pay EMIs. It represents the percentage of your income that can go toward debt repayment.

1. Salaried Professionals (60% FOIR)

Banks usually assume that salaried individuals have a predictable income. Therefore, they allow up to 60% of the net salary to be used for all combined EMIs. If your salary is ₹1 Lakh, your total EMIs (new + existing) cannot exceed ₹60,000.

2. Self-Employed / Business (50% FOIR)

Business income can be volatile. Consequently, banks apply a more conservative 50% FOIR for self-employed individuals to account for business fluctuations and operating costs. This ensures the borrower remains financially stable.

Formula Used

Eligible Principal = [ (Income × FOIR) − Existing EMIs ] ÷ EMI per Rupee

The "EMI per Rupee" is calculated using the standard amortized loan formula for ₹1 based on the selected interest rate and tenure.

Tips to Increase Your Loan Eligibility

Add a Co-Applicant

Combining income with a spouse or parent significantly increases the total eligibility as the bank considers the household income.

Clear Short-term Debts

Closing small credit card dues or personal loans reduces your "Existing EMIs," freeing up more of your income for the bank's assessment.

Frequently Asked Questions

What salary is required for ₹50 lakh home loan?
Assuming 8.5% interest and 20-year tenure, the net monthly salary required is approx ₹75,000 to ₹85,000 if you have no other debts.
How much loan can I get on ₹50,000 salary?
On a ₹50,000 salary, banks allow max EMIs of ₹30,000. At 8.5% for 20 years, you could qualify for approx ₹34.5 Lakh.
Do existing EMIs affect eligibility?
Yes, heavily. Every rupee you pay for an existing loan reduces the "disposable income" available for the new loan.
What is the maximum loan tenure in India?
For Home Loans, the maximum tenure is typically 30 years. For Personal Loans, it is usually 5 years.
Can joint applicants increase eligibility?
Yes. Banks combine the income of both applicants, which can nearly double your eligibility if both are high earners.
Is loan eligibility same as EMI affordability?
No. Eligibility is what a bank is *willing* to give. Affordability is what you *should* take without affecting your savings like SIPs.
How do banks verify income?
Banks verify income via salary slips (3-6 months), ITR (2-3 years), and bank statements showing regular salary credits.
What is the "EMI per Rupee" factor?
It is a mathematical ratio used by lenders to quickly calculate principal based on a target EMI. It changes with interest rates and tenure.

Related Tools

SIP Tool

EMI Tool

CAGR Tool

Inflation

SWP Tool

Disclaimer

Estimated results for educational purposes only. Final loan amount depends on your credit score and bank policy.

Last Updated: March 2026